Emergent Biosolutions (EBS) Up 21.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Emergent Biosolutions (EBS). Shares have added about 21.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Emergent Biosolutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Emergent Beats Q2 Earnings Estimates, Ups '20 Guidance
Emergent reported second-quarter 2020 earnings of $1.98 per share, which easily beat the Zacks Consensus Estimate of 53 cents. Moreover, the figure was up from earnings of 20 cents in the year-ago quarter.
Revenues in the reported quarter were up 62.3% from the prior-year period to $394.7 million, primarily due to an increase in product sales and contract development and manufacturing services revenues.
Quarter in Detail
Total product sales surged 63% to $298.5 million from the year-earlier quarter due to increased sales of anthrax vaccines and ACAM2000.
ACAM2000 generated sales of $70 million. Meanwhile, newly-acquired product, Narcan nasal spray, added $72.8 million to product sales, relatively flat year over year.
Notably, sales of anthrax vaccines (BioThrax and AV7909) were $132.3 million in the reported quarter, reflecting a significant increase year over year. Other product sales plunged 69% on a year-over-year basis to $23.4 million.
Revenues from contracts and grants decreased $17.4 million year over year to $23.6 million.
Contract manufacturing revenues surged to $72.6 million, increasing $53.9 million from the year-ago quarter’s figure due the company's landmark public-private CDMO partnership with BARDA in support of the U.S. government's Operation Warp Speed Program, related to the fight againstCOVID-19 pandemic.
The company recorded adjusted EBITDA of $15.3 million in the reported quarter compared with $8.4 million in the year-ago period, up 82.1%.
Emergent updated its financial outlook for the current year. The company now expects total revenues of $1.5-$1.6 billion compared with the previous forecast of $1.2 -$1.3 billion.
For the third quarter of 2020, the company expects total revenues of $420-$450 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Click to get this free report
Emergent Biosolutions Inc. (EBS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.